SW MOCK ,MARKING GUIDE FOR ENTREPRENEURSHIP ATVEE 2023 (PAPER 3)

SECTION A
1. Type of Entrepreneur Genius Marvin is
-Technopreneur: Because he has an MBA in Computer software engineering. – He discovered and
installed modern magnificient HD mainstream computer capable of linking 100 clients at a time.
-Innovative Entrepreneur: He introduced a new modern magnificient mainstream computer an delivered
rapid results than previous computers
-Imitative Entrepreneur: Copied WASPITO business secret - infringed inot Mr Shu’s business name
WAspito.
-Intrapreneur or Coprorate Entrepreneur: Though a worker with Waspito , he introducd a new online
consultation computer
2.Is Genius Marvin an Intrapreneur?why?
Yes as a worker in Waspito he introduced a modern manigficient HD mainstream computer. Equally he
delivers rapid results to clients satisfaction.
3. Pull factors for Entrepreneurship
-Desire for financial freedom
-Desire to contribute to economic growth and expansion
-Desire for independence (own boss)
-Desire to have control over economic resources or factors of production.
-Entrepreneurial training (coaching, mentorship)
-Craftsmanship -Inheritance
4. a. Act of Genius is illegal using WASPITO as his business name
-Copyright infringement or piracy
b. Reasons for using WAspito name without fear of outcome
-Waspito was not legally registered as a separate legal entity
-Had no certificate of incorporation
-Hence can’t sue and cannot be sued.
c. Measures to protect business
-Copyright - Register with the Registrar of companies -Keep business secret - Trademark the
business - Register slogan and business name
d. Logical steps to legalise business in Cameroon
1st: Registration in Commercial Registry : First constitute and fill the Articles and
Memorandum of Association, provide documents (NIC, Non Conviction, Marriage Certificate
for female entrepreneurs, localization plan, fees (64,000frs)
2nd Tax Registration(tax Payer’s Card): NIC, Trade registration, localization plan, fees (1500frs)
3rd:Registration with NSIF ( free of charge)
4th: Register with Labour Inspectorate (free of charge)
For the case of PLC or Ltd, same steps above are followed but company must be issued a
Certificate of Incorporation
5.a. Cashflow problems: Situation in the short run where a company can’t pay its short term due debts
because of shortage or lack of liquidity (cash)
b. Causes of cashflow problems
i. over investment on fixed assets ii. Over trade credits iii. Bad debts iv. Too many discounts given
v. Over investment in longterm securities vi. Over borrowing vii. Unforeseen expenditures -
unexpected changes in demand viii. Stock piling ix. Embezzlement etc
c. Solutions to above problems
-scrap idle assets - reduce or stop credit sales momentarily - chase debtors or factor debts - limit or
utter sales promotion strategy - convert longterm securities to short term securities. – audit, sue and
recover money from embezzlers - insure your business

SECTION B
6.a. Advanatages of small business to the economy
-Engines for economic growth and development -creates wealth for the nation through taxes -
provides employment - strong driver for innovations and industrialization - provides variety of goods
and services
b. Major methods of obtaining large capital
i. Angel investment : wealthy and accredited investors, fund businesses they have experienced and
know the risks involved
ii. Debt financing: borrow money from the bank and repay with interest - hire purchase -leasing -
mortgages - business angels -venture capitals
iii. Equity Financing : ie giving up a portion of company’s ownership to raise capital by;
-receiving contribution in cash from members
-selling or issuing shares to existing as well as new investors
Other self or internal financing methods include;
-ploughback or reinvested profit
-disposal of fixed personal assets
-past savings
c. Concept of business growth; ways of expansion
-situation where all business stakeholders influence the success of a company by; expanding its scale of
production or its customer base and market share.
Ways of Business Expansion
-Market Penetration -market development -product development - diversification
d. Relevance of Innovations in firms
-Makes company and product have a competitive advantage -Ensures continuous satisfaction of varied
needs of customers, hence leads to customer loyalty - increases customer base -Makes the firm a
center of attraction - New markets are served -ensures customer loyalty -may lead to higher profit
margin
7a. Stages of Intrapreneurship;
-Idea certainty: decision to become an entrepreneur
-Idea Generation: Business opportunity recognition /feasibility analysis
-Decision making and Business Planning: Decision to engage in business based on results from study.
Also requires drawing up of a business plan
-Determination of Required Resources: Decision on quantity /quality of factors of production to be used
-Project Creation: Business Registration and implementation of ideas
-Managing and Growing the business: Monitor business to its fruition and report feedback from results
b. Personal Characteristics of Entrepreneurs
-Serial innovators - Risk taking -empathy - creativity - Honesty - Vision - Tenacity
c. Differences between entrepreneurs and leaders
Entrepreneurs Leaders
Owners who set objectives Influence followers to attain objectives
Possess leadership qualities Must not have characteristics of entrepreneurs
May start and run a business alone Followers make a leader
Owners Employees
Greater money making potentials Less money making potentials

8. a. Industry the firms belong: communication Industry

b. Market Share for each firm
MS= Total Sales of a firm X 100
Total sales of all firms
But total sales of each firm=sum of sales of each firm from Jan – June

Sales of NEXTEL= 420+350+320+380+360+400=2230Mfrs

Sales of MTN= 810+650+660+800+820+390=4130Mfrs

Sales of CAMTEL=620+430+210+340+400+520=2520Mfrs

Sales of Orange=100+1230+960+980+1000+1200=6470Mfrs

c)Total sales of all firms =Sales of (NEXTEL+MTN+CAMTEL+Orange)

Total sales =15,350Mfrs

Therefore Market share for each firm will be

Market Share: Sales of the firm X 100

Total Sales

- M.S (NEXTEL )=14.5%

- M.S(MTN)=27%
- M.S(CAMTEL)=16.4%
- M.S (ORANGE)=42.1%

c.Position Firms above

FIRM MARKET SHARE MARKET POSITION

ORANGE 42.1% LEADER
MTN 27.0% CHALLENGER
CAMTEL 16.4% FOLLOWER
NEXTEL 14.5% NICHE OR IMITATOR

d. Market potential is the volume of sales generated by an industry amongst many industries in an
economy.

Market Potential of Communication Industry=2230+4130+2520+6470=15,350FCFA

e. Differences between a firm and an industry

A firm is any business organization engaged in the production and or sales of goods or services eg
CAMTEL, FOKOU, NJEIFORBI while an industry is a group of firms producing similar or identical products
eg Communication industry, petroleum industry, etc